What is the Sarbanes-Oxley Act (SOX)?

The Sarbanes-Oxley Act, also known as SOX, is a federal law that was enacted in the United States in 2002. SOX was created in response to accounting fraud scandals at large public companies, such as the collapse of Enron Corporation. SOX protects investors from accounting fraud by requiring that all publicly traded companies in the US have strict control standards in place. Under SOX, all public companies must have an independent audit of their financial statements and must have proper internal controls in place to ensure accuracy. Companies are also required to maintain accurate records of their financial activities, and must have an independent audit of those records. In addition to these requirements, SOX also requires that all companies disclose their financial information on a timely basis, meaning they must make their information available to the public in a timely manner. Finally, SOX requires that all companies implement a code of ethics that sets out the ethical standards that must be followed. Overall, SOX is an important law for the protection of investors and the public in general. It ensures that public companies are held to a high standard of accountability, and that the accuracy of their financial information is maintained. This in turn helps protect the public from accounting fraud and abuse of corporate resources.

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What is the Sarbanes-Oxley Act (SOX)?

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